Fresenius SE has agreed to acquire APP Pharmaceuticals, a provider of hospital-based injectable pharmaceutical products for $3.7 billion. The agreement also includes a contingent value right (“CVR”) that could deliver as much as $970 million more by 2011, depending on APP’s success. In addition, Fresenius will assume all of APP’s outstanding debt, a net of $940 million; the total value of the acquisition could reach $5.6 billion.

APP will join Fresenius as part of its Fresenius Kabi division. Through the acquisition of APP, Fresenius Kabi enters the U.S. pharmaceutical market and achieves a strong position in the U.S. injectable generics market.

Dr. Ulf Mark Schneider, chairman of the board of Fresenius SE, remarked, “APP is a fast-growing, highly profitable company with a strong management team that has an excellent market position in the U.S. Our firm very much shares APP’s dedication to quality and medical excellence for the benefit of patients. The acquisition provides significant growth opportunities for Fresenius Kabi. With the APP platform, Fresenius Kabi will be able to market its product range in the U.S. Fresenius Kabi’s international marketing and sales network will allow us to sell APP’s products globally. We welcome APP employees to our team and very much look forward to serving the North American healthcare community.”

Headquartered in Schaumburg, IL, APP is a hospital-based injectable pharmaceutical company, focusing on oncology, anti-infective, anesthetic/analgesic and critical care markets. The company develops, produces and markets a portfolio of more than 100 hospital-based injectable products and operates three manufacturing facilities producing a range of dosage formulations, including lyophilization.